How much to build 2 townhouses?

[Lilli]

Can anyone from their own experience give me an idea as to how much it would cost to build 2 townhouses on a block of approx 670sqm?

 

[Dave Hooper]

I have heard figures of about 10k a square, so if they are going to be 15 squares each you're talking about 300k for the 2.

Plus your other costs (subdivision, services etc)

But I know very little, so I am sure others will now tell me how wrong I am

 

[Lilli]

2 x double story 3br townhouses

 

[MichaelW]

2 x double story 3br townhouses

Its a very wide range depending on your level of finish and location. I'm doing three in Mona Vale on Sydney's northern beaches and the QS suggested $2500/m2 but that includes excavated basement costs.

I've heard others get them done for much less, and if I spec'd mine through the roof it could even go double that. But then I wouldn't be getting payback for the additional spend. The $2500/m2 positions it at the right point for the upper end market I'm targeting with a Gross Realisation of $880K each given a footprint of 140m2 odd 3+1 beds and 2.5 bath.

Here's some quick numbers an agent did for me to appraise the land value post DA approval which might help:

Gross Realisation $2,625,000
( 3 x $875K)

Costs
GST 170,000
Agency Fees/Marketing 60,000
Council 50,000
Holding Costs 100,000
TOTAL 380,000

Construction Costs
x 430 sqm @ 2,300 989,000
@ 2,500 1,075,000
@ 2,700 1,161,000

Lets assume 2,500 per sqm

TOTAL COSTS - $1,075,000 PLUS $380,000 = $1,455,000

ADD CONTINGENCY - $45,000 = $1,500,000

Sales 2,625,000
less cost 1,500,000

Leaves $1,125,000 for land cost PLUS profit

Assume Profit Margin of only 10 % - leaves land with value of around $900,000

I paid $690K for that site and another $50K odd to get the DA through. Still a nice little margin if I wanted to flick it, but I'll hold for now and plan to develop it when Sydney firms.

Hope this helps.

Cheers,
Michael.

 

[Bazza]

I added a Townhouse Feasibility Spreadsheet to the Somersoft Spreadsheet collection a couple of months ago that may help you work out the costs. Please see http://www.somersoft.com/forums/showthread.php?t=26452&page=4

Cheers,

Bazza